McDonald's Plans New Value Offerings for 2025 Amid Global Sales Dip

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McDonald's (MCD, Financials) is set to introduce a revamped McValue platform in 2025 to retain cost-conscious diners as inflation continues to strain household budgets, CNBC said Wednesday, citing sources close to the matter.

Available during the first half of the year, the program consists of a $5 value meal choice along with a "buy one, add one" deal for $1. According to people familiar with the strategy, the latter lets consumers choose from a range of foods like a double cheeseburger, McChicken sandwich, six-piece chicken nuggets, or breakfast choices including sausage McMuffin and hash browns, CNBC said.

Two people with knowledge of the situation believe the suggested value approach will pass even though franchise operators still have to approve it.

While worldwide same-store sales dropped 1.5%, the fast-food behemoth's third-quarter profits and revenue topped Wall Street projections. Sales in the United States increased only 0.3%, hardly meeting analyst projections. During the company's results call, CEO Chris Kempczinski underlined the need of a strong value basis and said that the 2025 value platform will try to excite consumers with fresh offers and efficient marketing.

You need, at the foundation, to have a strong value proposition. And that's been the focus for us in a number of our markets, either strengthening, adding to, adjusting our value programs so we have that good foundation, CEO Chris Kempczinski said.

An E. coli incident connected to its slivered onions caused problems for McDonald's in October that affected consumer flow. With $65 million set for financial help for owners in the most impacted locations and $35 million set for marketing and other traffic-driving projects, the firm intends to support franchisees impacted by the epidemic with more than $100 million.

This article first appeared on GuruFocus.

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